TDS for Self-employed Individuals

Learn TDS essentials for self-employed individuals: understand 194C TDS rate, TDS on rent, 194Q TDS, TDS on property sale, how to pay TDS online, and TDS deduction on FD.

play icon


episode thumbnail
play icon
E01: Deciphering TDS Deduction on Fixed Deposits
02 mins
TDS deduction on fixed deposits (FD) occurs when the interest earned on an FD exceeds Rs.40,000 in a financial year. In such cases, banks automatically deduct 10% TDS (Tax Deducted at Source) from the interest. For instance, if the interest is Rs.45,000, the bank deducts Rs.4,500 as TDS, and you would ideally receive Rs.40,500. The deducted TDS is sent to the income tax department. If your total income is below the taxable limit, you could claim a refund by filing an income tax return. Understanding TDS on FD is crucial for effective financial planning.
episode thumbnail
play icon
E02: Unravelling TDS Rules Section 194C Explained
04 mins
Section 194C of the Income Tax Act, 1961 mandates TDS deduction on payments to resident contractors or subcontractors by entities like governments, companies, and co-operative societies. The 'work' includes activities like broadcasting, advertising, and catering. TDS rates under Section 194C are 1% for individuals/HUFs and 2% for other entities, with a 20% rate if the PAN is not provided. TDS must be deducted if a single payment exceeds Rs.30,000 or total payments in a year exceed Rs.75,000. Timely TDS deposit is essential to avoid complications. Understanding 194C TDS rates and deduction rules could ensure compliance and avoid future issues.
Frequently Asked Questions
To pay TDS online, visit the e-Filing portal, select 'e-Pay Tax,' and enter your TAN and mobile number. Fill in payment details, choose payment mode, verify, and submit to the bank. Lastly, download the Challan form for future reference.
When the interest earned on your fixed deposit crosses the threshold (Rs.10,000 currently), the financial institution deducts a 10% TDS on FD. This deduction is made before crediting the interest to your account.
The buyer is responsible for deducting TDS on property sale as per Indian tax regulations.
Failing to comply with Section 194Q may lead to an expenditure disallowance up to 30% of the transaction value. Adherence to tax deduction requirements is necessary to avoid penalties.
TDS on rent is applicable if the annual rent exceeds Rs.2,40,000. Below this threshold, TDS deduction is not applicable.
FAQ Avatar